The National Center for Financial Education provides tips to smarter spending and saving:

Begin saving $1 a day, plus all pocket change. This should average about $50 a month, which can be used to make payments on credit cards or other high-interest loans. Key here: Do it every day to get into the saving habit.

Set up a payroll deduction for direct deposit into a savings account or for Series EE U.S. Savings Bonds.

Write down all income and expenses, paying special attention to cash purchases. Separate expenses into categories for fixed, which should include rent or mortgage and car payments; and flexible, which should include groceries and entertainment. Set aside income to cover expenses; the rest of your money is available to reduce debt or build savings.

The center recommends that consumer debt not exceed 20 percent of your take-home pay. An excessive debt-to-income ratio, sometimes called your ''debt-payment burden,'' can lead to financial ruin and poor credit ratings.

Spend cash. ''Nothing impacts the mind like peeling cash from the wallet,'' Richard said. And separate shopping trips (when you compare prices and decide on an item), from spending trips (when you make the actual purchase). Ask for cash discounts, especially on major purchases. Talk privately with a manager or supervisor; you might be surprised how cash can motivate a deal.

Limit credit-card use, and look for cards with low percentage rates and no annual fees.

''Those aren't hard steps to take,'' Richard said. ''I see people cutting back a little bit, but not really saving yet. For a lot of people, it takes intervention: The economy doesn't improve, taxes go up, or they lose their job.

''Spending is the key to everything,'' he said. ''Be willing to change your spending habits. It's not what you earn, it's what you keep.''